Lower Aussie Dollar

[GTR-N1]

Reserve Bank head states that our Aussie dollar is overvalued.

So if there's a stiff correction against the Yen we know that our import costs from Japan will go north.

Hmmm... Things might get tough.

[Iron Chef]

They've been saying it for the last 6 months - Joe Hockey lost something like $9bn on THAT gamble...

[elrodeo666]

Terry, it's got nothing to do with moronic Australian politicians, the value of the Aussie dollar is well and truly out of their hands, the yen is being devalued by Bank of Japan who Prime Minister Abe was able to finally place a puppet in charge of the whole operation and devalue the yen against the US dollar and roll the money printing presses. The US dollar had got extremely weak against the yen and Abe as part of his Abenomic plan had to get the presses rolling.

With the US having had their money presses going full bore for quite some time the Aussie dollar is propped way above what it's worth.

Won't come down until the US and Japan are happy with their economic status and ready to stop their presses and let their currencies run their normal trend, but when it does drop, it's going to hurt people big time.

Problem is in Australia most people financially walk round with their heads up their arses with no real clue whats going on on world scale with market manipulation and currency drives. The old it'll never happen here attitude is going to see a lot of people hurt in future years.

The other thing to keep in mind is all models of the Skylines are getting long in the tooth now and Japanese part manufacturers are slowing fading parts out of production.

With the average Tanaka not being able to afford big mods anymore (and really have not for quite some time) more and more manufacturers are shutting shop or adapting to the market and making parts to suit what the Japanese are buying these days. Have a look at the Top Secret catalogue these days, parts and kits for Prius's !!

I personally know of one huge Japanese aftermarket company that is slowly winding down their performance part production, shutting showrooms and workshops down accross Japan and have set up their main factory to build truck gearboxes and special earthquake shock absorbers for buildings. They'll be around for a bit longer thanks to the GTR35 but change is already happening and other companies are following suit.

People seem to think the foreign call for parts is big business but it's insignificant compared to Japanese local market and to survive it's either adapt or shut the doors.

[GTR-N1]

Good for us here at SAU to know - so thanks!

Makes me wonder what motive GS at the Reserve has for spruiking warnings about the housing market too.

It certainly is overheated - probably as he says, that houses are overvalued.

Thus, if he's correct, it's probably better to buy imported things NOW whilst the dollar is good > from DIY on the house to buying TVs, car spare parts or even a grey import vehicle - did I say NOW?